FACULTY:

BUSINESS MANAGEMENT
BACHELOR IN BUSINESS ADMINISTRATION (HONS) FINANCE

STRATEGIC MANAGEMENT (MGT 657)

“COMPANY REPORT (DIGI COMPANY)”

PREPARED BY:

NO NAME MATRIC NUMBER

1 NUR AMALIN AMZAR BINTI MUHAMAD 2019314405
2 HAFIZAH BINTI MOHD SHOKRI 2019338799
3 AEISHAH BINTI MUHAMAD 2019542583

PREPARED FOR:
SIR HASNUN ANIP BIN BUSTAMAN
GROUP:
BA242/5C
DATE OF SUBMISSION:
30 NOVEMBER 2020
ACKNOWLEDGEMENT
The success and final outcome of this assignment required a lot of guidance and assistance
from many people and we extremely fortunate to have got this all along the completion of our
assignment group work. Whatever we have done is only due to such guidance and assistance and
we would not forget to thank them. we respect and thanks SIR HASNUN ANIP BIN BUSTAMAN
for giving us opportunity to do this assignment work and providing us all support and guidance
which made us complete the assignment on time. We extremely grateful to him for providing such
a nice support and guidance.
We are really grateful because we managed to complete this assignment within the time
given by SIR HASNUN ANIP BIN BUSTAMAN. Last but not least, we would like to express my
gratitude to my lecturer, friends and respondents for support and willingness to spend some time
with us.

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TABLE OF CONTENT

ACKNOWLEDGEMENT ............................................................................................................................ i

TABLE OF CONTENT .............................................................................................................................. ii

LIST OF TABLE ........................................................................................................................................ iii

STEP 1: IDENTIFY THE FIRM’S EXISTING VISION, MISSION, OBJECTIVE, AND

STRATEGIES ............................................................................................................................................. 1

STEP 2: DEVELOP VISION AND MISSION FOR STATEMENT FOR ORGANIZATION............. 3

STEP 3: IDENTIFY THE ORGANIZATION EXTERNAL OPPORTUNITIES AND THREATS ..... 4

STEP 4: CONSTRUCT A COMPETITIVES PROFILE MATRIX (CPM) ........................................... 6

STEP 5: CONSTRUCT AN EXTENAL FACTORS (EFE) MATRIX. ................................................. 7

STEP 6: IDENTIFY THE ORGANIZATION’S INTERNAL STRENGTHS AND WEAKNESS ....... 8

STEP 7: CONSTRUCT AN INTERNAL FACTORS EVALUATION (IFE) MATRIX ....................... 9

Table 3: IFE ................................................................................................................................................ 9

STEP 8: PREPARE A STRENGTH-WEAKNESS-OPPURTUNITIES-THREAT (SWOT)

MATRIX ..................................................................................................................................................... 10

STEP 9: RECOMMENDED SPECIFIC STRATEGIES AND LONG-TERM OBJECTIVES. ........ 12

STEP 10: SPECIFY HOW YOUR RECOMMENDATIONS CAN BE IMPLEMENTED AND

WHAT RESULTS YOU CAN EXPECT. ............................................................................................... 14

STEP 11: RECOMMENDED SPECIFIC ANNUAL OBJECTIVES AND POLICIES ..................... 16

STEP 12: RECOMMENDED PROCEDURES FOR STRATEGY REVIEW AND EVALUATIONS

.................................................................................................................................................................... 17

EXHIBIT ..................................................................................................................................................... 18

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LIST OF TABLE
Table 1 : CPM .................................................................................................................................6
Table 2: EFE....................................................................................................................................7
Table 3: IFE .....................................................................................................................................9
Table 4: SWOT.............................................................................................................................. 10
Table 5: FORECAST .................................................................................................................... 14

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STEP 1: IDENTIFY THE FIRM’S EXISTING VISION, MISSION, OBJECTIVE, AND
STRATEGIES
VISION

Digi company have a good vision for their company. Digi vision is to attracts commitment
and utilize employees to obtain for an accepted standard of expected work and excellent.

MISSION

First mission for Digi Company is Digi will provide customer specific feature to meet
individual needs for engagement, communication and skills. Next, Digi has provided an
environment for their employees to grow and fulfill their own needs. However, Digi has giving
returns to shareholders and help the Malaysians to improve their life.

OBJECTIVE

Digi objectives goals is to build long-term value to the shareholder through provide the
service that easy-to-use, innovative and good value telecommunications facilities in the market
share in Malaysian. Besides that, it has to try to get market share in Malaysia.

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STRATEGIES

First strategy is penetration of market. Penetration of market is to analyze on how many a

product or facility that have been used by customers compared to the total estimated market.
Market penetration is the strategy that used by Digi to grow its business. Digi used this strategy
to rise customer loyalty and provide a better product and services to their customers. For example,
Digi provide a good reward system to subscribers and at the same time it will increase the number
of subscribers that will outstanding to the Strong Financial Performance. Digi also provide service
such as auto reload online payment and it very convenient to the Malaysian that have higher
standards of living.

Second strategy is market development. Developing the market is step taken by Digi to
expand their current market instead of searching for the new market. This strategy was used by
Digi for the provision of myriad foreign service and the ongoing pursuit of USP obligations and
providing the district designated for Digi with links to basic telephony communication. For
example, Digi will merger with Telenor to wider the oversea coverage and it will rise the number
of subscribers that will lead to the Strong Financial Performance. This chances also will lead to
globalization and increase of foreign worker.

Next strategy is forward integration. Vertical integration is a form of forward integration. A

business pushes more in the direction of managing the distribution of its product or its distribution
toward service. For example, this technique is used by Digi to apply the latest technology by
marketing the new technologies. Digi will be led by high capital investment to get and to meet end
users, the latest knowledge on emerging technology is uncommon or late.

Last strategy is product development. The production of goods is the full phase of to supply
a new product or to develop an existing one for customers. For example, Digi combine with owner
of the mobile providers to include the new technology and internet function into mobile. The core
of this strategy is it show innovation and implementation to the world class research and
development (R&D).

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STEP 2: DEVELOP VISION AND MISSION FOR STATEMENT FOR ORGANIZATION
VISION

Vision that can be develop in Digi company is can be seen as the leader in good customer
service by improving communication to rise the efficiency of customer quality while living at home,
work and play.

MISSION

Mission that can be generated in Digi company is deliver value to customers by innovative,
products and services, customized and appropriated. Secondly, have a secure high-quality for a
smooth internet experience, and stable 4G LTE connectivity. Third, develop creative ideas in
order to boost the digital lifestyle of consumers, digital service and related self-serve channel.
Ultimately, create equitable opportunities for individuals, companies and communities to benefit
from connectivity in a secure and accountable.

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STEP 3: IDENTIFY THE ORGANIZATION EXTERNAL OPPORTUNITIES AND THREATS
EXTERNAL OPPORTUNITIES

Firstly, globalization. Globalization is one of the most critical opportunities. Instant mobile
connectivity adds to the frequent international demand for roaming which is broadband and finding
knowledge.

Secondly, Higher Standards of Living Among Malaysians. This is the most meaningful
indication that most Malaysians are able to buy minimum of one mobile from provider of services.

Thirdly, Growing Penetration of Telecommunication and Demand (Broadband, Cellular). The

significant statistic shows the probability, as the higher the penetration, the greater the market for
the Digi brand and facilities.

Next, High Capital Investment. As an entry obstacle, this is a major factor. It is going to give
a high cost for a new entry to compete in the market with the current giant in industry.

Lastly, evolving technology (need competent human resource). Human talent is one of the
significant factor and one of the main areas for continuous success and survival of Digi, while the
expertise is costly.

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EXTERNAL THREATS

Firstly, highly cost switching. The reason is because the relationship with suppliers can be
destroy as they essentially regulate the sale of Digi’s goods and services.

Secondly, High Bargaining Power of Consumers. These risks are relevant because of the
power of low price bargain and increase efficiency turn to customers according to the absence of
data asymmetry.

Thirdly, High Inflation (Increase Price). This is really vital because high inflation is going to be
reducing the need for communication devices.

After that, Continuous technological development for wireless and wired telecommunications.
This is essential because once obsolete, Digi is still place behind Celcom and Maxis and it is hard
to get back in a short period.

Lastly, by 2022-2023 mobile networks (5G) are projected to be commonly used. It important
because the marketplace is overwhelmed with many news system and packages.

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STEP 4: CONSTRUCT A COMPETITIVES PROFILE MATRIX (CPM)
The competitive profile matrix (CPM) is an important technique management instrument
for comparing the business with the giant players of the industry. Competitive profile matrix proved
to the firm about their strength and weaknesses relative to their rivals.

Digi Maxis Celcom

Critical successful Weight Rate Score Rate Score Rate Score
factors
Advertising 0.20 3 0.60 4 0.80 3 0.20
Quality service 0.25 3 0.75 4 1.00 3 0.75
Loyalty of customer 0.15 3 0.45 3 0.45 2 0.30
Financial position 0.15 4 0.60 4 0.60 3 0.45
Price competitiveness 0.05 3 0.30 2 0.20 3 0.30
Operating management 0.05 4 0.40 3 0.30 3 0.30
Diversification 0.05 2 0.10 3 0.15 3 0.15
Market position 0.10 3 0.30 4 0.40 4 0.40
Total 1.00 3.50 3.90 2.85
Table 1 : CPM

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STEP 5: CONSTRUCT AN EXTENAL FACTORS (EFE) MATRIX.
Opportunities Weight Rating Weight
Score
Globalization 0.12 4 0.48
Higher standard of living / financial condition in 0.10 4 0.40
Malaysia
Rising telecommunication penetration and demand 0.11 4 0.44
Rising telecommunication penetration and demand 0.09 2 0.18
(Broadband, cellular)
High capital investment 0.08 3 0.24
Advance technology (need competent human 0.12 3 0.36
resource)
Threat
Elevated in switching costs to other suppliers for Digi 0.12 2 0.14
High bargain power of consumers 0.05 1 0.05
High inflation 0.11 4 0.44
Continuous technology advancement in wired and 0.08 4 0.36
wireless telecommunication
Mobile network (5G) expected to be wise widely by 0.02 3 0.06
2022-2023
Total 1.0 3.15
Table 2: EFE

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STEP 6: IDENTIFY THE ORGANIZATION’S INTERNAL STRENGTHS AND WEAKNESS
Matrix of Internal Factor Evaluation (IFE) is strategic method used within the
organizational areas of an organization to outline and review the main and minor strengths and
weakness, as well as the relationship between these positions.

The internal strength in Digi. Firstly, Digi always innovates because its R&D has always
surpassed the expectations of customers by supplying customers with innovation. For its
innovations, Digi has won a multitude of awards. Second, Affiliation with Telenor-wider oversea
coverage. Digi always been a strong working relationship with Telenor Group members that
enable them be a trusted company. Then, good reward systems to subscribers. As usual, Digi
have given a sequence of good reward system from past, present and upcoming to their
customers its make the customers be more loyalty in Digi product. After that, facilities. Auto
reloading of online payment services involved in Digi. This is to offer a convenience to customers.

The internal weakness in Digi. Firstly, strong emphasis on strategic sharing between
smartphone makers, writers of application, etc. Digi still depend on product development through
combination with mobile producers, writers of application and others to serve customers. Second,
latest info on new technologies late to reach end users. Digi is need to be careful as compared to
rivals, they rarely support new offering. This could be high disadvantage to them. Next, decrease
base station compared to other rivals. Digi have weakness in base station as they have to build
or share base station with competitor to expend coverage area. This is critical because the lack
of base station contributes to poor reception of the line that weakens the satisfaction and loyalty
of customers. Lastly, Internet speed is not consistent. Digi also have problems with the speed of
the Internet is not consistent. It’s can lead to customers not satisfied with the services.

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STEP 7: CONSTRUCT AN INTERNAL FACTORS EVALUATION (IFE) MATRIX
Strength Weight Rating Weight Score
Innovation 0.14 4 0.56
Affiliation with Telenor-wider oversea 0.12 4 0.48
coverage
Good reward systems to subscribers 0.10 4 0.40
World Class Research and Development 0.10 4 0.40
Facilities, auto reloading 0.10 3 0.30
Weakness
strong emphasis on strategic sharing 0.08 2 0.16
between smartphone makers, writers of
application, etc.
Latest info on new technologies 0.11 2 0.22
seldom/late to reach end users
Lack of base station compared to other 0.11 1 0.11
competitors
Internet speed not consistent 0.14 2 0.28
Total 1.0 2.91

Table 3: IFE

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STEP 8: PREPARE A STRENGTH-WEAKNESS-OPPURTUNITIES-THREAT (SWOT)
MATRIX
OPPORTUNITIES
1. Globalization
2. Higher standard of living
among Malaysia
3. Rising telecommunication
penetration and demand
4. High capital investment
5. Advance technology
(need competent human
resource)
THREATS
STRENGHTS
1. Innovation
2. Affiliation with Telenor-
wider oversea coverage
3. Good reward systems to
subscribers
4. World Class R&D
5. Facilities – auto reloading
SO strategies
1. Market Penetration
Increase loyalty benefits and Utilize latest technology by
provide current customers
with reliable and good
services. (S3, O3)
2. Market Development
Attract new subscribers with
their cheap prices as
standard of living is getting
higher. (S1,O1,O2)
3. Sales are improved by
efficient management,
marketing and R&D with HR
(S4, O5)
ST strategies
WEAKNESSES
1. Strong emphasis on
strategic sharing between
smartphone makers, writers
of application, etc.
2. New technologies seldom
or late to reach end users
3. Lack of base station
compared to other
competitors
4. Internet speed not
consistent
WO strategies
1. Forward Integration
marketing new product
through dealers instead of
ambassadors. (W3,O4)
2. Marketing further effort to
market new innovation or
technology with the help of
high capital investment.
(W4, O4)
3. Since there is high capital
investment, build more base
stations. (W1, O5)
WT strategies
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1. High switching costs (to
other suppliers for Digi)
2. High bargain power of
consumers
3. High inflation
4. Continuous technology
advancement in wired and
wireless telecommunication
5. Mobile network (5G)
expected to be wise widely
by 2022-2023
1. Product development 1. Spend on improving
To avoid being obsolete coverage. It might be a bit
overnight, manufacture new pricier but good for targeted
and tech-savvy products. market. (W4,T4)
(S3,T4,T5)
2. Approach the active users
2. Spend on R&D to provide of smartphones by
wider coverage. (S4,T5 introducing products through
booths. (W1, T2)
Table 4: SWOT
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STEP 9: RECOMMENDED SPECIFIC STRATEGIES AND LONG-TERM OBJECTIVES.
I. SPECIFIC STRATEGIES

The specific strategy for Digi company, we recommended Digi to use market penetration
strategy in post-paid services as it is highest sales revenue of Digi and financial performance
keep strong from years to years. Next, strategy under market penetration can implement by
improving the existing products, offers low prices for the services in order to ensure the customers
more attract and start to consume the products. Digi also need to do a good marketing such a
promotion especially to their loyal users and conduct regular media engagements to provide
updates on business performance and development, so that the product could reach easily to the
customers. Therefore, Digi could increase their sales revenues since the demand for the product
rise in the market because customers aware and loyal with the Digi’s product compared to others
telecommunications network.

Next strategy is product development. Digi Telecommunication Sdn Bhd must improve on
their product development such joint venture with handheld mobile providers to include latest
technologies and internet function into mobile. For example, deploy and monetize 5G for the
services networks that parallel with development of technology around the world. Digi
Telecommunication Sdn Bhd may prepare Digi’s network for 5G deployment and drive
collaboration with potential industry and solution partners, and Telenor. Thus, can attract more
customer to use Digi’s product which give the best internet experience on Malaysia’s largest
network, ready for 5G and derive more value from existing customer base at affordable price. Digi
Telecommunications already have strength in their company such provide wide overseas
coverage and good reward systems to subscribers, so it easy to get the customers if they offer
more an innovative product compared to other competitors.

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 II. SPECIFIC LONG TERM OBJECTIVES

First, the specific long term objectives for Digi company is to improve the profitability of the
business as can increase healthy profit plus growth.

Second, Digi company can continue to expand the business in the international business
regarding the wide coverage.

Third, Digi telco can be the first choice among customers around the world compared to other
Telco’s in the market.

Lastly, increase market shares of Digi by strengthening customer relationship.

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STEP 10: SPECIFY HOW YOUR RECOMMENDATIONS CAN BE IMPLEMENTED AND
WHAT RESULTS YOU CAN EXPECT.
First, Digi can be implemented if it can make an effective marketing strategy. Digi can
make sales promotion and advertisements more interactive to be more effective by investing in
their website, social medias, and display ads on sites so that it can have direct interaction with
their existing customers and new targeted customers. This technique very effective where the
advertising can be seen everywhere and people who see it and will be attract to explore more
about the product.

Next, Digi can be implemented if it is always updated and carry out research on the
development of technology nowadays. Digi should emphasize on product improvement which is
not offered by other competitors in order to attract more customer to use the product. Furthermore,
Digi must apply R&D as technology is changing very rapidly then Digi can come out with
innovation products.

Lastly, Digi Telecommunication Sdn Bhd should plan that consist of all those managerial
activities related to preparing future such forecasting in financial, establishing objectives, devising
strategies, and developing policies. Other than that, Digi Company also require to focus on
organizing such duty and authority for every department, motivating, staffing and controlling.

Forecast Digi Telecommunications Financial Statement.

ITEM PREVIOUS VALUE FORECASTED NEW VALUE

(RM) (%) (RM)
Revenue 6,297,358 20% 7,556,829.90
Research 606,614 10% 667,275.40
Development
Net Profit 1,432,949 10% 1,576,243.90
Table 5: FORECAST

Forecasting the revenue for the Digi Company proposed to ensure the company can
obtain higher net profit. So the Digi company must take action by doing an effective marketing for
their product such promotion and advertisement about their product and also new product. a great
marketing may attract more customer from local and also from abroad to purchase the product.
therefore, the company can gain more profit from high revenue.

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 Based on the research and development forecast, the new value is higher than previous
value with an increase of 10 percent. By implement the research and development for the product,
it may increase the productivity for the Digi company. The company improve their product by
offering an innovation for new product that can exceed the customer expectation then it may
contribute to the higher demand for the product. Next, by conducting the research and
development to the product, it can come out with the efficient production process with the lower
cost and lower risk.

Lastly, net profit of Digi company can be improved by managing their expenses. Digi
company expend more money to their expenses such as cost of material and traffic expenses,
sales and marketing expenses, operations and maintenance expenses, rental expenses, interest
expenses and staff expenses. Digi can reduce their expenses by reducing the staff cost, so they
need to choose the staff that has a good skill and high experience. Therefore, Digi can increase
their net income after reducing some expenses.

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STEP 11: RECOMMENDED SPECIFIC ANNUAL OBJECTIVES AND POLICIES
I. SPECIFIC ANNUAL OBJECTIVES

We have recommended the several specific annual objectives for the Digi company. First,
the specific annual objective is to make sure increasing in net profit. Net profit that company
gain after manages all the expenses used in the business operation smoothly.

Second, to generate sales higher than previous years to improve company financial
performance and ability to meet the short term obligations.

Third, produce the new innovative product with multifunctional. Simplify systems and
processes to be more effective and efficient to attract more customers used Digi as their
telecommunication services in Malaysia market.

Fourth, to build a future ready workforce, with critical digital competencies. All the workers
have a good skill, responsibility, focus and understand on what they need to do with their task
or job especially task related to the new strategy in the organization.

Lastly, to provide best internet experience on Malaysia’s largest network compared to

other networks.

II. SPECIFIC POLICIES

There are several specific policies recommended for the Digi Telecommunication Sdn
Bhd. First policy is the top management should manage task for their employees with integrity
and responsibility that align with every department. It is to make sure all the staff have a clear
understanding with the task given so that they could present a high quality output.

Second, to ensure compliance with internal controls and the prescribed laws and
regulations. It’s provide guidance and direction for proper management and governance of
operations and business activities. All staffs and employees must follow all the rules and
regulations to avoid any problem occur in the organization.

Third, to evaluate strategy need consistency and feasibility that can give an advantages
for company. Fourth, risk management and internal controls by identifying and evaluating risks
faced and monitoring the achievement of business goals. To strengthen on risk management
framework, Digi have to improve their risk management practices.

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STEP 12: RECOMMENDED PROCEDURES FOR STRATEGY REVIEW AND EVALUATIONS
In conclusion, we recommend some procedures to implement the strategy. Digi company
should have the knowledge of the processes for the development, implementation, find out the
advantages and disadvantages, identifying the risk, and measure the cost before start the
strategy. Next, the strategy of the organization may be achieved when the managers and
employees are involved in implementing any strategies. Involvement of managers and employees
before meet the organization strategy, objective, mission and vision, and construct an external
and internal evaluation. When the managers and employees involve in implementing the new
strategy, it may give clear understanding to them on what the organization plan for the future
improvement and they will more committed to helping the organization achieve the objective.
Lastly, all the strategies planned by the organization can be implemented well if there is a good
and structured procedure made by the Digi company. Other than that, with a better procedure
also may lead the Digi Telecommunication Sdn Bhd to obtain more profit, lower risk and lower
cost in implementing any strategies in future.

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EXHIBIT

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